Water chief investigated over award of public contracts to architect friend

The new chief of Sydney Water, Greg Robinson, has been referred to the Independent Commission Against Corruption after it was revealed the architect who designed his holiday home later won a public contract following a personal recommendation.

Mr Robinson, who took over as head of Sydney Water in May, is also facing an internal investigation. Ambushed on the matter during a budget estimates hearing in State Parliament yesterday, he said he had recommended the architects Misho & Associates to Sydney Water's general manager of finance, but was "very clear" about his "conflict of interest".

There was no tendering process for the contract, which is worth $47,000 and was awarded shortly after Mr Robinson took over as head of Sydney Water.

Misho Vasiljevich, the architect at the centre of the storm, denied any wrongdoing on Mr Robinson's part. He described their friendship as "better than average".

"I've always been aware that he's in a position of government and there's been a certain amount of discretion," Mr Vasiljevich told the Herald.

Mr Vasiljevich said he had won up to a dozen contracts from public organisations headed by Mr Robinson in the past eight years.

In 1995, when Mr Robinson was commercial development manager for Sydney Airports Corporation, Misho & Associates won a contract worth several hundred thousand dollars for interior works at the airport.

While Mr Robinson served as chief executive of the Sydney Harbour Foreshore Authority between 1999 and May this year, Mr Vasiljevich successfully tendered for "small" contracts worth between $30,000 and $100,000 each.

Misho & Associates is also the joint design architect for stage three of Sydney Aquarium. The proposal was controversial because it included a zoo that would compete with Taronga Zoo.

While Mr Robinson was not involved in the selection processes as head of the foreshore authority, he publicly supported the plan, telling one journalist it would "enrich the Darling Harbour experience". The comments were made while Mr Vasiljevich was still working on the Robinsons' holiday home at Coalcliff, north of Wollongong.

Mr Vasiljevich said he was the fourth architect approached by the Robinsons, after previous firms had failed to produce designs that met council approval.

The allegations of favouritism first came to light in an email from a Sydney Water employee to the corporation's chairwoman, Gabrielle Kibble, last Wednesday.

Ms Kibble referred the matter to ICAC and the Minister for Energy and Utilities, Frank Sartor. The commission yesterday confirmed it was looking into the matter.

A spokesman for Mr Sartor said the minister thought Mr Robinson had been "injudicious" but had not committed a hanging offence.

Mr Robinson told the hearing yesterday that Mr Sartor had called him last week.

"The minister was supportive of me, he made that very clear. He also believed I had not done anything corruptly," Mr Robinson said. "He was also of the view that we needed to look at the procedures of the way that we engaged contractors and consultants to make sure that the perception next time around could be avoided."

The Opposition's energy and utilities spokesman, Brad Hazzard, said Mr Sartor should not have come out in support of Mr Robinson until Sydney Water's investigation was complete and ICAC had finished its inquiries.